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FDIC hires law firm to investigate allegations of ‘toxic atmosphere’

US banking regulator’s chair says it will not ‘turn a blind eye’ to report of harassment and discrimination

The Federal Deposit Insurance Corporation on Monday hired law firm BakerHostetler to review allegations of widespread sexual harassment, inappropriate behaviour and discrimination at the US banking regulator.

In a video message sent to staff on Monday, FDIC chair Martin Gruenberg called the reports “serious” and vowed that the agency would not “turn a blind eye”. He reiterated a previous call for staff with evidence of inappropriate behaviour to come forward.

Gruenberg said BakerHostetler would lead an independent “top to bottom” assessment of the FDIC’s workplace and the alleged conduct.

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